Arguing Class Actions: CAFA’s Local Controversy Exception
Arguing Class Actions is a monthly column for the National Law Journal.
December 02, 2024 at 07:00 AM
7 minute read
Congress enacted the Class Action Fairness Act to confer federal jurisdiction over large, complex class action cases spanning across states. The law provides for removal of a class action to federal court, even without complete diversity, when the amount in controversy exceeds $5 million and any plaintiff is a citizen of a different state than any defendant. 28 U.S.C. § 1332(d)(2). Certain lawmakers heralded that the law would “take [certain] cases out of State courts, where there has been a record of prejudice to defendants, and take them to the [f]ederal courts where, in the historical tradition of diversity litigation . . . there is a better opportunity for an objective determination.” 151 Cong. Rec. S999-02, S1000, 2005 WL 283380 (daily ed. Feb. 7, 2005) (statement of Sen. Specter).
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